Ministers binge at public expense every month

By Dilrukshi Handunnetti

At least 29 ministers draw the monthly housing rent allowance of Rs 100,000 paid to ministers of cabinet, non cabinet and deputy ranks with the majority of them nevertheless holding private residences in Colombo.

The allowance is paid to ministers of all ranks who do not possess a private home in Colombo to facilitate their stay in Colombo.

According to a series of oral questions answered in parliament, out of the 29 ministers who do claim the allowance, around 25 have their own private residences within the District of Colombo.

At least two such ministers not only obtain the allowance while having a Colombo residence but also maintain a flat each at the Madiwela MPs Housing Complex.

Besides, there are at least two lavish spending ministers who are occupying lavish luxury apartments with government money - one at Park Residences, Colombo 5 and another at Park Residencies, Colombo 2.

Besides the above allocation, these ministers have their entire electricity and water bills footed by their respective ministries.  

According to The Sunday Leader investigations, the Public Administration Ministry has spent over Rs. 1.3 million to renovate the official residence of Transport Minister Dulles Alahapperuma including some special fittings, in the year 2006.

According to answers submitted to parliament during oral question time, Alahapperuma's monthly electricity bills between September and December 2007 have been in the range of Rs.13, 000 to 36,000.

Likewise, Minister of Constitutional Affairs and National Integration, D.E.W. Gunasekara who receives a monthly house rent of Rs. 100,000 has received Rs. 24.6 million collectively as house rent between June 2004 to December 2007.

Besides, Minister Gunasekera's residence had a power generator installed at the cost of Rs. 1.75 million, according to parliament records.

Fisheries Minister Felix Perera is another UPFA cabinet member who has incurred huge expenditure when his official residence was renovated in 2006 at a cost of Rs. 1.6 million. A year later, another Rs. 2.4 million had been incurred for renovations.

According to information revealed to the House, Minister Felix Perera's total electricity bill in 2007 had been a staggering Rs. 1.39 million while his water bill for the period was Rs. 88,000.  Meanwhile, Minister of Water Supply and Drainage A.L.M. Athaulla has run up electricity bills ranging from Rs. 13,000 to Rs. 36,000 during the period of September to December 2007.

TMVP vows not to disarm

The TMVP last week said it will continue to carry arms as threats by the LTTE were still prevailing.

The Tigers had recently attacked several offices and camps of the TMVP in Chenkalady and Vavunathivu.

TMVP Spokesperson K. Iniyabharathi told The Sunday Leader that the recent incidents in the east would not create an impact on the TMVP's stance and said that the reason for the party to continue to be armed was due to the threats by the Tigers.

"The recent incidents in the east are not the reasons for the TMVP to carry arms. The TMVP is carrying arms for its own security. The party is threatened by the LTTE. There are no other threats. Therefore, we will continue to carry arms until the LTTE lays down its arms or is completely destroyed," Iniyabharathi said.

"When we look at the recent incidents, the attacks have been carried out against the civilians. It is not clear as to who is carrying out the killings."

The TMVP had continuously stated that the LTTE was present in the east. Though the party said that the LTTE was functioning in small groups within the jungles, it had reiterated that there was no chance for the TMVP to disarm.

Lanka may face intl. credit suspension

By Paneetha Ameresekere

Sri Lanka's existing international credit lines may be suspended and even if it could source credit internationally, it might be at a premium, the local head of a credit rating agency told The Sunday Leader in light of Friday's Supreme Court (SC) interim order against oil hedging.

The SC suspended the state owned Ceylon Petroleum Corporation (CPC) from making hedge payments on contracts with banks on a Fundamental Rights (FR) plea. Head of Fitch Rating Lanka, Chanaka Wickramasuriya said that in the light of Friday's court order, there is a possibility of credit lines drying up, particularly to the CPC whose operations depend heavily on seeking international credit from commercial markets, or the premiums charged being raised, essentially raising CPC's borrowing costs.

Wickramasuriya however contended that even if the SC ultimately cancelled CPC's hedge payment contracts, it could not be construed as a payment default as that would be the result of an action of an independent entity, namely the courts.

But creditors then may think twice before giving any money, as there would be a doubt whether the borrower, particularly if it is a state agency would be legally bound to honour such contracts in the light of those developments, he said. 

Wickramasuriya however said that his headoffice in London had informed him that London does not consider the SC Interim Order as a sovereign default.

"It's construed as a dispute between two parties, the petitioner and the CPC by Fitch," he said. An interim injunction does not mean the cancellation of CPC's hedging obligations. It merely gives the SC time to study the case in detail and also for the CPC to file its objections, said Wickramasuriya.

Fitch is a London based international rating agency. It has given Sri Lanka a 'B Plus' Sovereign Rating.

"B ratings are essentially the bottom of the rung ratings for a country," said Wickramasuriya. It means that if Sri Lanka is to source credit from international markets, it will be at a premium, at some 15-20%, made worse by the current global credit crunch, he said.

However, CPC indirectly obtains credit from some Singaporean banks through the state owned Bank of Ceylon (BoC) at a much lower rate, at LIBOR plus 4-5%, probably because those are revolving funds of around US$ 500 million, he said. LIBOR currently is around 2+%, he said.

Meanwhile, a CPC source speaking on the grounds of anonymity said that CPC directly maintains accounts with People's Bank, BoC, as well as with the three foreign banks with branches in Colombo; with which it has also entered into hedging contracts, namely Deutsche Bank, Standard Chartered Bank and Citi Bank.

In the light of Friday's interim order, he was unsure of the fate of those facilities with those international banks.

However, a banking source speaking on the grounds of anonymity said that the suspension order won't affect the facility that they had provided to CPC. The court has given the Monetary Authority time to go into the matter, until such time his bank has not thought of taking any action, the source said.

Meanwhile, a stock market source speaking on the grounds of anonymity said that even before Friday's interim injunction foreigners were pulling out of the bourse. "This would only make it worse," he said.

The source further said that hedging was well and good when the CPC was saving money, now the problem has arisen because they are losing money, he said.

President off to Italy, Turkey with large delegation 

President Mahinda Rajapakse left for Italy and Turkey yesterday on board a special SriLankan Airlines flight.

The Sunday Leader learns in the first leg of the tour which will be to Rome,  President Rajapakse and the First Lady Shiranthi Rajapakse will meet with Pope Benedict XVI.

Informed sources said the visit to Rome will not include any official engagements with the political leadership of Italy. However the visit to Turkey which will follow is an official State visit. It is learned the number in the Presidential entourage will be about 50 including the ladies in waiting.

The Sunday Leader also learns Foreign Minister Rohitha Bogollagama has included 10 persons into the delegation, most of whom will travel commercial. Informed sources said Secretary, Foreign Affairs Ministry, Palitha Kohona had pulled out of the visit at the last moment after it was indicated his presence will not be necessary.  These sources said monies for the two visits have already been sent to the Sri Lankan Embassies in Italy and Israel (which covers Turkey) based on loose estimates given by them.

A top source said despite intensive lobbying, meetings with the Italian President and Prime Minister have been denied for the second successive time-after the last visit to the FAO conference in June.

It is learned the Sri Lankan Embassy in France thereafter sought a meeting for the President with the President of France but that too was not forthcoming.

These sources said the meeting with the Pope was due to the efforts of Bishop Malcolm Ranjith who is occupying a senior post under the Pope .

It is learned the Bishop has advised the President to tone down the Government's message after a 'bull in the china shop' approach by Sri Lanka's Ambassador to Italy, Hemantha Warnakulasuriya.

A top Foreign Ministry source said the protocol and the delegates for both visits were finalised by President's Co-Ordinating Secretary Sajin Vass Gunawardene. It is also learned agendas for both visits are still being prepared.

The Sunday Leader learns the final cost for the visit including board, lodging, security, cars, special planes, commercial tickets and special entertainment costs for ambassadors could be in the region of US$ 1 million.

The President however had expressed displeasure before departure over the failure of Sri Lanka's Ambassadors in Italy and France to obtain appointments with the respective Heads of State.

"Arun dennagen kisi wedak nanay, " (Those two fellows are useless) the President had said.

With reference to the appointment with the Pope the President had said, "ara bishopta pin sidda wenna thamai paap wahanse balanna labenne". ( Thanks to the Bishop we will get to meet the Pope)

The President had also made references to the entourage of Minister Bogollagama stating, "sure ekata amathiya minihage rala kohoma hari geniyanawa . "

(Minister will for sure take his gang)

Fowzie won't resign portfolio

Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie will not resign from his cabinet portfolio following the Supreme Court order in the oil hedging case The Sunday Leader learns.

A source close to Minister Fowzie said the President was free to remove the Minister but that he will not quit.

Passing severe strictures on Minister Fowzie for his role in the controversial oil hedging deal and for justifying the conduct of Ceylon Petroleum Corporation Chairman Asantha De Mel, the Supreme Court on Friday called upon the President to take over the Petroleum Ministry and appoint a suitable minister in terms of Article 44 of the Constitution.

Informed sources said Fowzie however will not resign but wait for the President to remove him and decide a course of action based on the President's decision.

" If the President does not remove Minister Fowzie he will continue in office," a source close to the Minister said adding it is an issue the President will have to resolve with the Supreme Court. The decision of Fowzie not to quit also followed earlier rumours in the political grapevine that Senior Presidential Advisor Basil Rajapakse was keen to take the portfolio away from Fowzie which the President was reluctant to do fearing serious political consequences.

" All this speculation will be laid to rest if the President does not remove Minister Fowzie," this source said.

It is learned that Minister Fowzie will not accept any other portfolio but occupy the back bench if the President sacks him in terms of the Supreme Court order.

Fear stalks Batti with 16 murders in two weeks

Fear was stalking Batticaloa last week after at least 16 killings were reported in the last fortnight with elected local government officials going on strike against the murders.

Members of the pradeshiya sabhas held a token strike to oppose the killing spree in Batticaloa, besieged Eastern Province Chief Minister Sivanesathurai Chandrakanthan said.

"We vehemently condemn the killings. There is a perception that we (TMVP) are also involved in the killing spree. It is not true. Therefore, it was decided that the local government members should protest against the killing," Chandrakanthan told The Sunday Leader.

Chandrakanthan added that he had met with Defence Ministry officials and had discussions on this issue. "It is the responsibility of the defence officials to make sure that these incidents do not happen. Whoever is carrying out the murders, they are killing families."

"It is more important to stop these killings than to think of who is doing this. Therefore, we say that the defence authorities should take immediate steps to put an end to the killing spree," Chandrakanthan added.

 "Security in the area is intact. But there are isolated incidents. Those incidents continue to happen," Police Spokesperson SSP Ranjith Gunasekara told The Sunday Leader.

The killing spree comes in the wake of growing divisions between Chandrakanthan and the Leader of TMVP Vinayagamoorthi Muralitharan. There were unconfirmed reports that said that Chandrakanthan now based in Trincomalee has been unable to visit his home base of Pesalai, north of Batticaloa due to security fears.

Indian attacks seal dead winter for Sri Lanka tourism

By Nirmala Kannangara

The Tourist Hotels Association of Sri Lanka (THASL) expects the attacks on Indian hotels and their guests to have a severe fall out on the country's leisure industry, President, THASL, Srilal Miththapala told The Sunday Leader.

Following the global financial crisis already the THASL has received many cancellations in forward bookings during the past few months. The latest Indian situation has further frightened the hoteliers in the country as the upcoming festive season would see a clear decline in tourist arrivals according to Miththapala.

"Although certain people try to say that the Indian incident would boost Sri Lanka's tourism industry it would not be so. Definitely it will affect our leisure industry badly and no more forward bookings could be expected for the season," added Miththapala.

According to Miththapala, Sri Lanka's tourism industry has had to face three major setbacks now, which would be hard to deal with. "From one side our internal conflicts have left the industry suffering badly and secondly the global financial crisis has added to the local situation. With the latest Indian attacks in Mumbai now the entire Asian region has become a no go zone for leisure seekers and those who wanted to visit the country during the upcoming festive season would now change their destinations in fear," Miththapala stated.

However when asked as to what action the THASL has taken to ensure the safety of their guests, Miththapala said that after the meeting with President Mahinda Rajapakse following the Indian attacks, the President has assured the THASL of government security to strengthen the protection of hotels.

"We have decided to open only one entrance in each hotel in order to provide maximum protection. The President has assured us of security by personnel in civvies and also we are planning to get down security devices to tighten the security arrangements," he further said.

However Miththapala reiterated the necessity of hotel staff and guests to be vigilant to face any situation and added that although the industry is suffering immensely there is a silver lining at the end of the tunnel as the country is heading towards a military victory over the LTTE.

Garbage issue aggravates

By Risidra Mendis

The Environment and Natural Resources Minister came under criticism by UNP MP P.Harrison who accused him of adding more garbage to the pile at Bloemendhal Road in Grandpass.

Commenting on the rising garbage dump at Bloemendhal Road Harrison said that when Ranawaka took over as Environment Minister he promised he would clear the garbage dump within a month.

"The Minister had not even completed a month in office when he made this statement. We thought that Ranawaka would solve the garbage problem which former Environment Ministers Maithripala Sirisena and A.H.M.Fowzie couldn't do. However the garbage dump at Bloemendhal Road has only increased in size," Harrison said.

He added that the improper disposal of solid waste has caused health issues in the country resulting in diarrhoea and dengue among others. "It is the responsibility of the Environment Minister to create awareness among school children and find a speedy solution to the garbage problem," Harrison explained. 

In response to Harrison's statement Ranawaka said by 2012 a proper mechanism will be in place to solve the solid waste problem. "For the past 60 years the solid waste problem remained unsolved in the country. The UNP couldn't solve the garbage problem but is now criticising the government. The Environment Ministry has implemented many programmes with the intention of solving the garbage problem. At present there are seven compost manufacturing companies in the country. The Ministry will increase this number to 14 companies soon," Ranawaka said. 

Campaign to create awareness on violence against women

By Risidra Mendis

The Gender Based Violence Forum (GBV) has branded 19 buses with the GBV Forum slogan "Violence Against Women Hurts Us All - Act Now - End Violence Against Women" to commemorate the International Day for the Elimination of Violence Against Women which fell on November 25. 

November 25 is also the first day of the 16 days of activities against gender based violence against women, which will continue till December 10. 

The Sunday Leader learns that the reported cases of gender based violence against women is on the increase. However whether these figures have risen due to the increased incidents of gender based violence or due to the efforts of many organisations encouraging women to speak out against these crimes remains unclear.    

Speaking to The Sunday Leader Facilitator, GBV Forum, Bimali Ameresekere said the 19 buses would ply on the routes of Kandy, Galle, Negombo, Pettah, Gampaha, Pettah, Mathugama, Horana, Mathugama, Kalutara, Puttalam, Tabbowa, Kandy, Pilimatalawa, Alawathugoda, Nuwara Eliya, Galle, Matara, Kantalai, Trincomalee, Vavuniya, and Akkaraipattu-Pottuvil among others.

The GBV Forum has launched this campaign to create awareness on the violence against women among the public. As part of the campaign stickers with this slogan were pasted inside buses and on trishaws by GBV Forum officials.

Fisheries Federation livid over fishy deal

By Nirmala Kannangara

The alleged unloading of fish free of charge at the Galle Commercial Harbour from a vessel belonging to the wife of a senior minister has resulted in a huge revenue loss to the Fisheries Ministry, Convener, All Ceylon General Fisheries Federation and JVP Parliamentarian Premasiri Manage alleged.

Manage told The Sunday Leader that the Fisheries Ministry has calculated the loss of revenue to be over Rs.1,500 million for the past four years and as a result the Fisheries Corporation is now running at a loss and is finding it difficult to even pay the salaries of its employees.

"According to the Fisheries Act, unloading fish from all foreign vessels has to be carried out at the Modera Fisheries Harbour enabling the authorities to recover the unloading charges, anchorage fees and the purchase of the mandatory 'C' grade fish at a price determined by the Fisheries Ministry at one place. At present there are nine registered shipping companies that bring fish ashore and out of those nine vessels - 'Bon Bridge' is owned by the wife of a minister from down south," added Manage.

According to Manage since the Fisheries Corporation charges Rs.20 from each kilo of fish that is unloaded at Modera, the minister in order to avoid any payment to the government, has got illegal permission from the then  Fisheries Corporation Director General, enabling him to get the authority to unload the fish from his wife's vessel at the Galle Commercial Harbour.

"With this course of action the government has lost more than Rs.1500 million over the past four years as the fish was unloaded at the Galle Commercial harbour free of charge. We also learn that the other eight foreign vessels too drop off their stockpile to 'Bon Bridge' in mid seas to be unloaded at Galle," added Manage.

However Manage said that the former fisheries minister in the Chandrika Kumaratunga government in 2004, Chandrasena Wijesinghe after realising the damage caused to the industry due to the free unloading of fish at Galle Commercial harbour, had instituted legal action against Mahinda Wijesekera.

"It was three weeks earlier that the judiciary ordered Wijesekera to pay compensation to the Fisheries Corporation when he was found guilty. But Wijesekera is yet to make the payments to the Fisheries Corporation," Manage alleged.

However Minister Wijesekera told The Sunday Leader that he has filed an appeal in the Appeal Court against the judgment and said he had to get special approval for the vessel 'Bon Bridge' to enter the Galle Commercial Harbour as it could not enter the Modera Fisheries Harbour as it was a commercial vessel and not a small fishing vessel.

"There were no facilities for 'Bon Bridge' at Modera and that was the reason I had to get permission to unload our catch at the Galle Commercial Harbour. However we have appealed against the court ruling in the Appeal Court," Wijesekera said.